ICAI Decision: CA can be Director Simpliciter/Professional Director
According to a recent ruling by the Institute of Chartered Accountants of India (ICAI) Board of Discipline, a Chartered Accountant in practise is not guilty of professional misconduct if they serve as a Director Simpliciter or Professional Director.
A Member of Institute of Chartered Accountants of India is also willing to promote or sign the memorandum and articles of association of any company without any restrictions. It is also not a barrier for such a promoter or signatory to serve as a Director Simpliciter of that Company, regardless of whether the Company's objectives include any fields that are covered by the Chartered Accounting profession. Members are not therefore needed to ask the Council for a particular authorisation in such situations.
The Institute of Chartered Accountants of India (ICAI) Board of Discipline has decided that the respondent is not guilty of professional misconduct as defined by Item (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949, as a result.